Samsung Biologics and the Win-Win Labor Union, which have been in conflict over wage and collective bargaining negotiations, will enter a mediation process on September 8. Following the company's first full strike in May, both parties are looking to this external mediation as a potential breakthrough in their long-standing negotiations.
According to industry sources, Samsung Biologics and the labor union agreed to proceed with mediation through the Incheon Regional Labor Relations Commission during their 27th collective bargaining session held on August 27.
The union stated, "The Incheon Regional Labor Relations Commission has agreed to facilitate a swift mediation process," adding, "Once mediation begins, the company is expected to present its proposals, which should accelerate negotiations." However, the schedule for the mediation is still being finalized, so the September 8 date is not yet confirmed.
Mediation occurs after the labor dispute resolution process has concluded but remains unresolved, allowing the labor commission to step in again at the request of both parties. Samsung Biologics and the union had previously agreed to pursue mediation during their 25th collective bargaining session on August 11.
Since late last year, the two sides have disagreed over wage increases, improvements to personnel systems, and collective agreements. The union staged a partial strike in April, followed by a full strike in May. The key issue in the upcoming mediation will be whether they can reach a compromise on the main points of contention regarding wages and collective agreements.
Market observers are also closely watching when the impact of the strike on production will be reflected in financial results. Analysts believe that the effects of the five-day full strike in May could be seen in the third quarter's revenue.
In the second quarter, despite some production disruptions, Samsung Biologics reported revenues of 1.32 trillion won and an operating profit of 586.4 billion won, marking increases of 30% and 23%, respectively, compared to the same period last year. The company anticipates achieving the upper end of its revenue growth guidance of 15-20% year-over-year, supported by increased contributions from its fifth plant and production facilities in Rockville, USA, as well as favorable exchange rates.
IBK Investment & Securities has analyzed that the production disruptions from the full strike are likely to impact third-quarter revenues significantly. However, considering the recovery volumes in the fourth quarter and the increased operating rate of the fifth plant, the overall impact on annual performance is expected to be limited.
According to industry sources, Samsung Biologics and the labor union agreed to proceed with mediation through the Incheon Regional Labor Relations Commission during their 27th collective bargaining session held on August 27.
The union stated, "The Incheon Regional Labor Relations Commission has agreed to facilitate a swift mediation process," adding, "Once mediation begins, the company is expected to present its proposals, which should accelerate negotiations." However, the schedule for the mediation is still being finalized, so the September 8 date is not yet confirmed.
Mediation occurs after the labor dispute resolution process has concluded but remains unresolved, allowing the labor commission to step in again at the request of both parties. Samsung Biologics and the union had previously agreed to pursue mediation during their 25th collective bargaining session on August 11.
Since late last year, the two sides have disagreed over wage increases, improvements to personnel systems, and collective agreements. The union staged a partial strike in April, followed by a full strike in May. The key issue in the upcoming mediation will be whether they can reach a compromise on the main points of contention regarding wages and collective agreements.
Market observers are also closely watching when the impact of the strike on production will be reflected in financial results. Analysts believe that the effects of the five-day full strike in May could be seen in the third quarter's revenue.
In the second quarter, despite some production disruptions, Samsung Biologics reported revenues of 1.32 trillion won and an operating profit of 586.4 billion won, marking increases of 30% and 23%, respectively, compared to the same period last year. The company anticipates achieving the upper end of its revenue growth guidance of 15-20% year-over-year, supported by increased contributions from its fifth plant and production facilities in Rockville, USA, as well as favorable exchange rates.
IBK Investment & Securities has analyzed that the production disruptions from the full strike are likely to impact third-quarter revenues significantly. However, considering the recovery volumes in the fourth quarter and the increased operating rate of the fifth plant, the overall impact on annual performance is expected to be limited.
* This article has been translated by AI.
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